The proportion of Payment Protection insurance (PPI) complaints being resolved in the consumer’s favour has declined, figures from the finance watchdog have shown.

The Financial Ombudsman Service (FOS) said just under seven out of 10 (68%) of PPI complaints cases were settled in the consumer’s favour in the last three months of 2011, compared with more than nine out of 10 (92%) between July and September. The typical refund sum paid out is £2,750, but the figure can “vary considerably” and run into tens of thousands of pounds in some cases.

The FOS pointed out that the previous spike of 92% of complaints going the consumer’s way came shortly after a legal challenge of PPI complaints was dropped. The figure includes cases in which businesses have decided to settle in the consumer’s favour once FOS proceedings have started, as well as complaints which the FOS has upheld itself.

The British Bankers’ Association confirmed in May 2011 that it was not going to appeal against a High Court ruling that rules relating to the mis-selling of PPI could be applied retrospectively. Despite the legal developments, the FOS has warned that cases are likely to become “more entrenched” and could take longer than the typical three to six months to clear up.

The FOS, which makes rulings on complaints that financial firms have failed to resolve, has received more than 300,000 PPI complaints in total, and said it upholds the “vast majority” in consumers’ favour.

The latest figures showed that a surge in PPI complaints drove the number of new cases received by the finance watchdog up by 10%, compared with the previous quarter. New PPI complaints rose by more than 50%, from just under 20,000 between July and September 2011 to more than 30,000 between October and December, by far outstripping other types of problem.

The FOS said feedback suggests it will continue to receive “substantial” volumes of PPI complaints for “another two or three years”.

“Making a refund application against a bank or other large financial institution can be a daunting prospect, which is why it is much better to seek help from an organisation like Brunel Franklin, rather than struggle on and be left to try and work out the details for yourself. We operate a no-win-no-fee service and there is nothing to pay until your case is successfully won and the vendor has paid out.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51